This saga reminds me of the Travelstead follies...
http://www.nytimes.com/1989/07/06/ny...air-space.html
Quote:
A Battle Looms Over Grand Central's Air Space
By DAVID W. DUNLAP
July 6, 1989
What may become one of the most critical land-use battles of the 1990's began yesterday when the New York City Planning Commission heard a proposal to transfer development rights from Grand Central Terminal to a site several blocks away, where they would be used to build one of the largest skyscrapers in Manhattan.
Sometimes angry and contentious, representatives of the developer and of the Penn Central Corporation, which owns the terminal and its air rights, said a ''constitutional problem of grave dimension'' might result if they were frustrated in their plans.
They also said that a rejection of their proposal might reopen the whole question of Grand Central's landmark status, which was upheld by the United States Supreme Court in 1978 when Penn Central was rebuffed in its effort to build a 53-story tower directly over the terminal building.
A key point is that the transfer of development rights would have to take place along an unbroken chain of lots in common ownership between the railroad terminal at Park Avenue and 42d Street and the development site at 383 Madison Avenue, between 46th and 47th Streets. 'Can't Build Anywhere Else'
Penn Central asserts that the chain exists below the surface of the streets and sidewalks, where it owns a series of lots from the landmark to the skyscraper site.
But city planners are skeptical. ''In the view of staff, proof of the requisite chain has not been established or documented,'' said Debra Silberstein, supervising attorney in the City Planning Department. ''Consequently, we doubt if the application qualifies.''
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http://www.nytimes.com/1989/11/15/bu...ir-rights.html
Quote:
Plan to Ease The Transfer Of Air Rights
By David W. Dunlap
November 15, 1989
THE New York City Planning Department has proposed to expand the area in mid-Manhattan to which unused development rights from Grand Central Terminal could be transferred for future building projects.
The proposal comes at a time of considerable dispute involving a proposed 74-story tower at 383 Madison Avenue, whose developers sought to transfer air rights by contending that the necessary chain of ownership existed in the subsurface lots between the terminal and their site. The City Planning Commission turned them down in August, and they are now suing the city.
Instead of relying on ownership patterns, the planners' proposal for the Grand Central area would spread eligibility to receive air rights along the lines of the existing or potential pedestrian network, at street level and underground, connecting 21 buildings to the terminal.
''That goes a long way toward mitigating the effects of new development,'' said Robert E. Flahive, director of the department's Manhattan office.
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http://www.nytimes.com/1990/09/02/re...on-avenue.html
Quote:
Grand Central's Air Rights; M.T.A. Assembles a Madison Avenue Receiving Site
By DAVID W. DUNLAP
September 2, 1990
Somewhere in the air over Grand Central Terminal - floating like an invisible, enormous, amorphous and very valuable mass - are somewhere between 1.6 million and 1.9 million square feet of unused development rights. Just where these rights can descend to earth has been a matter of the most critical civic controversy since the late 1960's.
The Metropolitan Transportation Authority said last week that it has an interest in seeing to it that the development rights are utilized so that it can take over the terminal and begin a $400 million master plan for its renovation. The authority has already prepared a possible receiving site for a small chunk of those air rights by assembling the whole Madison Avenue blockfront between 44th and 45th Streets.
In a stronger market, the 22,595-square-foot parcel comprising Nos. 341, 345 and 347 Madison Avenue might be a most attractive development locale.
Since 1979, the M.T.A. has owned and had its headquarters in the former Equitable Trust Building at No. 347, a 20-story structure with 187,000 square feet of space. Now, it owns 345 Madison Avenue, a 15-story building with 81,250 square feet, which it bought for $23.7 million from an equity fund managed by Trammell Crow Realty Advisers of Dallas.
And it also owns 341 Madison, a 19-story building with 46,250 square feet, which it bought for $12.2 million from the Vector Real Estate Corporation of Manhattan. Five floors at No. 345 are to be used for offices of the authority that are now at 11 West 42d Street. Also, the Metro-North Commuter Railroad will move offices from the terminal into the newly acquired buildings.
''This is no net expansion,'' said Frederick S. Harris, director of real estate at the authority. ''It's not like the M.T.A. is growing. We're reshuffling. When all is said and done, the idea was to utilize our own space and to make sure that we weren't forced to renew these outside leases.''
''For the medium term,'' Mr. Harris said, ''we can hold these buildings. They are no real drain on our resources. And in the long term, we have put something together that would be very valuable as an assemblage.''
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The MTA site is now one of those sites De Blasio is expediting before the full Midtown East rezoning kicks off.
http://www.thefreelibrary.com/Air+ri...ew.-a015246515
Quote:
Air rights case headed for Supreme Ct. review.
After a tortuous legal process that began nearly 20 years ago, the contractual owner of over a million square feet of air rights from Grand Central terminal may yet get his day in the U.S. Supreme Court.
In fact, the case arose because the Beaux-Arts Terminal itself was designated a landmark by the City of New York. The decision to uphold the landmarking of the Terminal and not permit a 53-story tower to be built above it was affirmed by that very court in July of 1978, leading to the current legal battle.
In making its landmark designation, the city allowed transferable development rights (TDRs) that could be sold to adjacent landowners to help defray maintenance costs, but Penn Central contested the scheme as not being good enough, saying the landmark designation amounted to a "taking" of the property.
The Supreme Court decision in Penn Central Transportation Co. vs. City of New York upheld the city's landmarks law, with the majority insisting the landmarking and denial of permission to build a tower wasn't a taking because the city provided a way to transfer development rights and did not impede existing uses or prevent a reasonable return on investment. That ruling carried far reaching implications for municipalities and developers across the country.
The current TDR contract vendee, G. Ware Travelstead, said that in his dissent at that time, then Associate Justice William H. Rehnquist predicted the matter would find its way back to the Supreme Court in the future because cities have a way of foiling promises. Justice Rehnquist is now the Chief Justice and his dissent was joined by then Chief Justice Warren E. Burger and Associate Justice John Paul Stevens. It was a portion of these TDRs - sometimes referred to as air rights - that Travelstead contracted to purchase in 1986 from Penn Central in order to transfer them to the nearby 383 Madison Avenue, which he wanted to raze and replace with a 74-story tower. New York's City Planning Commission ruled against the transfer on several grounds.
Travel stead appealed the City Planning ruling, which said the Terminal could not use the underground railroad tracks as its nexus to transfer 787,335 square feet of development rights. Planning argued that during the bankruptcy period of the railroad, when adjoining parcels including the Yale Club and the Roosevelt Hotel site were sold, while the Terminal had retained the subsurface rights, it wasn't sufficient to meet a requirement for a chain of tax lots under common ownership. That chain was broken.
"That's why we're in court," Travelstead said. "That's part of the $410 million lawsuit." At the time he contracted for the TDRs, the price was to be determined by an escalating contract beginning at $44 million and rising to "much more than that now," according to a Penn Central official. Travelstead declined to comment on the price. In the intervening years, since Travelstead began the appeals process through the court system, the City Planning Commission created a special district, effectively enlarging the number of buildings to 21 to which air rights could be transferred by a variety of special permits.
According to legal documents provided by Waters, the Travelstead building would have been a 33.1 FAR, 74-story, 1,029-foot high office building with 1.437 million square feet of space, and would replace the existing 13-story office building.
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